C1Part 15Deduction of income tax at source
Chapter 4Deduction from payments in respect of building society securities
C2C3889Payments in respect of building society securities
1
This section applies to any payment made in a tax year if—
a
it is a payment of a dividend or interest in respect of a security issued by a building society, and
b
conditions A and B are met in relation to the security.
2
Condition A is that the security was listed or capable of being listed on a recognised stock exchange at the time the dividend or interest became payable.
3
Condition B is that the security is not—
a
a qualifying certificate of deposit (see section 985),
b
a qualifying uncertificated eligible debt security unit (see section 986), or
c
a quoted Eurobond (see section 987).
4
The person by or through whom the payment is made must, on making it, deduct from it a sum representing income tax on it at the F1basic rate in force for the tax year.
5
For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—
a
see Chapter 15 if the person making the payment is a UK resident company, and
b
otherwise see Chapter 16.
6
See also Chapter 11 (payments between companies) for an exception from the duty to deduct sums representing income tax under this section.
7
In this section—
“dividend” includes any distribution (whether or not described as a dividend), and
“security” includes a share (and, in particular, a permanent interest bearing share as defined in section 117 of TCGA 1992).
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)